Question

what is the role of the firm's board of directors in managing the firm,and what are the three legally obligated responsibilities they have to carry out?

Answer 1

There are several roles and responsibilities played by the board of directors in managing the firm. Some are :

• The board is responsible for the recruitment, supervising, retaining, evaluation, and compensation of the CEO or general manager of the company
• The board plays an important strategic function while developing the vision, mission, and goals for the company.
• The board designs a governance system for the business that provides a framework and a series of policies for the employees of the company.
• Another responsibility of the board is developing a governance system that involves the procedure for board interacting with the CEO.
• The board of directors also monitors and controls the operation of a company hence they are also in charge of the auditing process and hire the auditor. It should also make sure that the audit is done in a timely manner.

The three legally obligated responsibilities they have to carry out are. Duty of care (ecruitment, supervising, retaining, evaluation, and compensation) , loyalty (conducting audits), fidelity (corporate governance)